The number of H-1B visa cap registrations for the fiscal year 2026 has seen a significant decline, according to the latest data from the US Citizenship and Immigration Services (USCIS). Only 358,000 registrations were submitted this season, representing a steep 26.9% decrease compared to the previous year’s 478,000. When contrasted with fiscal year 2024, the drop is even more pronounced, with registration numbers down by more than 54%.
From these 358,000 registrations, only 120,141 have been selected to proceed further in the H-1B visa process. This visa program, which has long served as a gateway for Indian IT professionals and a vital staffing source for American tech companies, provides 85,000 visas annually. This includes a 20,000-visa allocation specifically for individuals holding US master’s degrees.
Multiple reasons are being attributed to this sharp decline. Key among them are recent changes in USCIS policies, higher application costs, and evolving career aspirations among international job seekers. A major contributing factor is the agency’s intensified efforts to clamp down on duplicate applications and system misuse.
“Based on evidence from the FY 2023 and FY 2024 H-1B cap seasons, we undertook extensive fraud investigations, denied and revoked petitions accordingly, and continue to make law enforcement referrals for criminal prosecution,” the USCIS stated in an official release on its website. The agency added that it is currently scrutinizing data from FY 2025 and FY 2026 to uncover any attempts to exploit the system through the new beneficiary-centric selection process.
The USCIS emphasized that it would take stringent measures wherever necessary. These include rejecting applications, revoking approvals, and referring cases for criminal prosecution. “We believe that the decreased filing rate for FY 2024 H-1B cap petitions and the decreased registration numbers for FY 2025 and FY 2026 indicate that these investigations, and the beneficiary-centric selection process, have been effective integrity measures,” the agency’s statement added.
Apart from regulatory crackdowns, the escalating cost of registration has emerged as another significant deterrent. This year, the USCIS increased the H-1B registration fee from a nominal $10 (around Rs 856) to a substantial $250 (approximately Rs 21,000). This dramatic rise has altered the cost-benefit equation for many applicants, especially students and young professionals.
“It’s no longer a small gamble,” commented a software developer from Nagpur who is currently residing in Washington under the Optional Practical Training (OPT) program. “When the fee was $10, people thought, why not try? But $250 is serious money, especially when you’re not guaranteed a shot. I’m still unsure if I’ll register next year—I’ve started saving up.”
Simultaneously, a noticeable change in global migration preferences is unfolding, with many potential applicants now considering destinations other than the United States. Countries such as Australia and Germany have begun to attract those seeking clearer immigration paths and more welcoming environments.
“Many of us are looking at Australia or Germany now,” said Aaftab B, a postgraduate from Hyderabad who is currently living in Chicago. “Their immigration systems are more straightforward, and you feel more welcomed there. I am also considering UAE. The US feels uncertain—long wait times for green cards, H-1B dependency, job instability. It’s just not worth the anxiety anymore.”
Experts warn that these dynamics could significantly alter international student migration trends, particularly from India, which has traditionally been one of the largest sources of foreign students in the United States.
“The ‘American Dream’ of immediate employment at a high salary with full sponsorship of an H-1B visa will elude most foreign students. It’s not the late 90s and early 2000s anymore,” said Orn Bodvarsson, an economist and senior academic. “As word continues to travel back to India that post-graduation labour market outcomes are not as strong as before, Indian student emigration to the USA will weaken.”
This transformation in perception is expected to have lasting implications. For decades, the H-1B visa has been viewed as a secure and desirable path for talented professionals, especially in the technology and engineering fields. However, the current environment—marked by tightening rules, rising costs, and growing uncertainty—appears to be reshaping that narrative.
For many potential applicants, the cost of applying has now become a calculated risk rather than a low-stakes opportunity. Where a $10 registration fee encouraged mass applications and minimal financial hesitation, the new $250 charge has forced applicants to seriously weigh the odds. Many now consider whether the stress of the uncertain outcome is worth the investment.
This sentiment is echoed across various sectors of international professionals. Even for those who have studied in the US and gained valuable experience, the long-term uncertainty about visa renewals, employment security, and green card backlogs is discouraging.
“I’ve been here for over five years,” said another Indian professional who preferred not to be named. “I went through OPT, then H-1B, and now I’m stuck in a green card backlog. The anxiety doesn’t go away. Every year, there’s some policy change, some delay. You don’t feel settled.”
In contrast, countries like Australia, Germany, and the UAE are emerging as stronger alternatives. With their more transparent immigration frameworks, faster processing times, and often more straightforward paths to permanent residency, these nations are becoming increasingly appealing to international talent that once focused solely on the US.
Analysts suggest that if this trend continues, it could have wider implications for American tech firms that have long relied on a steady influx of skilled foreign workers through the H-1B program. A decline in foreign applications may eventually force companies to adjust hiring practices, invest more in domestic training, or even shift operations to countries with more accommodating immigration policies.
Overall, the H-1B program’s future now appears to hinge on how the US adapts to these evolving challenges. While efforts to reduce fraud and misuse are understandable and necessary, they must be balanced with accessibility and clarity for genuine applicants. For now, however, the sharp fall in registrations signals a deeper shift in global sentiment and strategy among international professionals.